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Linda Chapman
Questions (2)
Simtek currently pays a $2.50 dividend (D0) per share. Next year’s dividend is expected to
be $3 per share. Aft er next year,
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Cascade Mining Company expects its earnings and dividends to increase by 7 percent per
year over the next six years and then to
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Answers (1)
Cascade Mining Company expects its earnings and dividends to increase by 7 percent per year over the next six years and then to remain relatively constant thereaft er. Th e fi rm currently (that is, as of year 0) pays a dividend of $5 per share. Determine
